Book Genre: Academic, Business, Economics, Grad School, Mathematics, Nonfiction, Reference, School, Science, Textbooks First, make a scatter-plot of the two variables and look for possible patterns in the relationship between them.

COMPREHENSIVE COVERAGE ENSURES UNDERSTANDING IN CRITICAL AREAS OF ECONOMETRICS. This edition continues to offer trusted, comprehensive coverage with expanded discussions of prediction after transformation, missing data, unbalanced panel data sets, weak instruments and causal effects. UNIQUE ORGANIZATION PIONEERED BY THE AUTHOR CLEARLY PRESENTS APPLICATIONS FOR TODAY'S STUDENTS. This complete econometrics text was the first to explicitly cover cross-sectional applications in initial chapters, followed by time series applications, and, ultimately, panel data applications in the advanced chapters. The modern approach of this text recognizes that econometrics has moved from a specialized mathematical description of economics to an applied interpretation based on empirical research techniques. It bridges the gap between the mechanics of econometrics and modern applications of econometrics by employing a systematic approach motivated by the major problems facing applied researchers today. Throughout the text, the emphasis on examples gives a concrete reality to economic relationships and allows treatment of interesting policy questions in a realistic and accessible framework. Introductory Econometrics: A Modern Approach by Jeffrey M. Wooldridge – eBook Details

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The example in the text is interested in the return to another year of education, or what the percentage change in wages one might expect for each additional year of education. To do so, one must use the \(log(\) wage \()\). This has already been computed in the data set and is defined as lwage.

The documentation indicates these are data from the 1976 Current Population Survey, collected by Henry Farber when he and Wooldridge were colleagues at MIT in 1988. Build a linear model to estimate the relationship between the log of wage ( lwage) and education ( educ).